The cost of servicing US debt is the highest in decades: On Thursday, the US government sold $25 billion of 30Y Treasury bonds at a 5.216% yield, the highest auction yield since 2001. This follows a $42 billion auction of 10Y Treasury notes on Wednesday that resulted in a 4.683% yield, the highest since 2007. Previously, on July 9th, the government sold 30Y Treasury bonds at a 5.058% yield, the highest since 2007, highlighting the worsening trend in US debt financing costs. By comparison, yields on the same-maturity Treasury auctions were below 2.00% during the 2020 pandemic. This comes as investors are demanding more compensation to finance the US government's ever-growing deficit. In July, the US Treasury’s budget deficit surged +$141 billion YoY, to $432 billion, the largest July total in history. The US debt crisis is entering uncharted territory.(The Kobeissi Letter)